HomeMy WebLinkAboutR2025-073 20250519RESOLUTION NO. R2025-73
A Resolution of the City Council of the City of Pearland, Texas, authorizing
expenditures with McGriff Insurance Service, for Wind, Hail, and Wind Driven
Rain Insurance, in the amount of $1,528,995.81, for the period of May 26, 2025
to May 26, 2026.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the City Council hereby authorizes expenditures, in the amount of
1,528,995.81 for Wind, Hail, and Wind Driven Rain Insurance.
PASSED, APPROVED and ADOPTED this the 19th day of May, A.D., 2025.
________________________________
J.KEVIN COLE
MAYOR
ATTEST:
________________________________
FRANCES AGUILAR, TRMC, MMC
CITY SECRETARY
APPROVED AS TO FORM:
________________________________
DARRIN M. COKER
CITY ATTORNEY
Docusign Envelope ID: D5FEED05-D173-487C-809D-58937D77A5A4
Region XIV Education Service Center
1850 Highway 351
Abilene, TX 79601-4750
325-675-8600
FAX 325-675-8659
April 1, 2024
Mr. Joseph Blasi
Senior Executive Vice President
McGriff
10100 Katy Freeway, Suite 400
Houston, TX 77043
Sent via email to: jblasi@mcgriff.com
Re: Renewal of Region 14 ESC contract - #09-08, Risk/ Insurance Management Services
Dear Mr. Blasi:
Region 14 Education Service Center is pleased to announce it is renewing contract #09-08, Risk/
Insurance Management Services for the period July 31, 2024 through July 31, 2025, in accordance
with the contract.
If you have any questions or concerns, feel free to contact me at 325 -675-8600.
Sincerely,
Shane Fields
Region 14, Executive Director
DocuSign Envelope ID: 733C2518-0E10-4CF4-AAA6-11DD8DA9161F
MarshMcLennan
Agency
AGREEMENT (“Agreement")eiteclive May 1,2025 (the
'Eliectrve Dale”).between Marsh at McLerinan Agency
LLC ('MMA').and City oi Peariand.Texas (“you').
It is aglesd as Voiluws:
1.Sent a
MMA I act as your Insurance broker and/or risk
management consultant with respect to the lines or
insurance listed in Section 2 MMAshall provide to you
the lollowing services (the “Servtoes‘x
Pre Market 959 as
(a)Conducl an initialslrategy discussion in advance oi
each placement.
(ti)Assist you in assessing your risks and in developing
insurance speci?calinns which MMA will suomit to
insurers,
to)Recommend potential insurers;
Mayketlng Ind Placement Slrvlcos
(dl Solioit quotes ironi insurers that you select:
(a)Negotiate on your behall with insurers;
(i)Assisl you in evaluating the options received lrom
insurers,
(9)Use besl eilorts to place insurance tor you,out only
aneryou have authorized MMAto oind coverage tor
you:
Services nlalad to MMA placements
(h)Delivel con?rmation 0'coverage once it Is placed:
(i)Follow up with insurance carriers to obtain policies
andI or endorsements.MMA may deliver your
insurance policies and endorsements to you
eleclmnicallyi
a)Review policies and endorsements ior ooniormily
with agreed terms and coverages;
(k)Provide coverage summaries;
(I)At your request,issue celllficales or memoranda or
insurance and/or auto iden|iflcaliori cards,
(in)Review premium and exposure audits,rating
adjustments,dividend calculations and loss data;
in)Provide you with invoices.except in the case D'dilecl
billing oy insurers,Remit premiums to insurers and,
where applicspie,remit taxes and tees to the reievant
authorities.loltowing receipt thereoi frunl you,
insurers end alert insurers tellsoatowMMA‘sminimum ?nancial guidelinesClaim9(1 Se Ice:(,2)Pruvtde the rollovringdaimaraiatad services:.Evaluate coverage applicabilityon all MMApiecedbusinessRnlmrnDulcluirr
-Assist you in the development oi settlement
strategies
-Assist you with insurer negotiations
MMAmay utilize the services of intennadiaries to place
your insurance,subjed to your approval,
MMA may retain your inlormation in paper or imaged
lorrnat and may destroy paper copies it MMA retains
digital images lhereol,
MMAmay include,on an anonymous oasis.iniormalion
relating to your insurance program In benchmarking,
modeling,analytic and insurance oilerings,
2%me
Line of Governors
commercial Property 7 wrnleati Layered Program
commercial Pmpeny e Winleaii DeductibleBuynmrn
a,main."
MMA willdeliver the Services to you for an annual lee or
$42,100,00l
The annual tea shall be paid by you commencing May 1
2125MOne 1 gaymen
Please see Appendix A tor our standard compensation
disclosure,which we may update from time to time,
MMA shaii credit against the annual lee any retail
commissions collected oythem it these commissions tor
a contract year exceed the annual fee,then MMA will
return any exosss retail commissions to you unless
prohibited by applicaoie antisrebaling laws
MMAcan provide additionai services at an additionaicosl.
The coal and scope oi additional services will be agreed
in advance and rellected in an amendment to lhls
Agreement or a separate agreement.
it there is e signiiicant change in your operations or risks
that atteols the nature and scope or your insurance
program andlor service needs,both parties agree to
renegotiate MMA’s compensation in good taitri.
compensation Disclosure
Please see Appendix A ior MMA‘s standard
4 Term and irzmiinution
'ltie 1111111111ii '
l lit:llvu Diitr‘
'1tiit its one year stiiiting :1'1 Tie
)(EXliliiCBCI in writing
went LlDC'i 93 (iays’
.5 this Agreen‘e
S itli1n 1111inmay teirni'
r111111 wntten notice if .y'lA termin .
r1 &McLennan Agency‘s CCF‘CenSal 11 M11 be
atnustedpro-rertutnun .ilttiklltrath”nillnv’i'1n'1:i't
f you teirriirmtu ttiizs A1;i111n1t.t/‘a'sti ti M l1ti1i1
Agency’s(niiiuinuniip 1nwillt1 11111111111111111
‘11 one (110%at tin:1:11 ii1zrii;oii1c.“‘.oi the 1tiiiir.1_
your ('1‘7 1:1 'zrin 111111 or 1l11-11111111
lfilllUU/rlli'tQ'even 1112'1‘oitiiernrrre“
'1 igation of MMA ano its affi‘iates to provide
.Ces to you Will cease men the effective date of
nazcn,.znless otherwise agreed in 1 rltirrg
Taxes and Furs
111111111:11111
mi iiisiiiiiriz
4.tax 1li .Xes 11 a taxes surplus or
1nd similartaxes arid/oriees to federal state
a:1 71 regulators boards or associatons You agree
y such taxes and fees "lAwrll FEF‘liany taxes and
“a:it collects from you to the appropriate authorities
you that 'nay require the
11.111 taxes {including US
6 Your ResQonsibilities
ch shall be solely respc anuurany and
r1"r‘i1ii'itr‘i11‘iT111.1111iriioin 111111thiiyou liirriistit1)MMA
11/111in ir1n .and you Slim”1 any 1ariuireo‘
appication loi'insuranr .MMA shall not be responsible
to verily the accuracy or completeness of any in‘crrnatior
that you provide,and MMA shall be e1 nied to rely on the:
information MMA sb'have no llab‘llly for any errors.
deficiencies or leSSlCi‘s n any Sen/*ces prowoeo‘to you
including the placement or’insurance on your be‘all iii
are based on maccurate or incorriplete nr'oririm‘io"provided to Marsh &McL nnan Abnn:You 1:11
thatthe failure ‘3 prov 'de-
You Will review
MMA
oo'icy docun‘erts provided to you by
7 Disclairriers Limitation ofLiability
MMA does 111J2 speak for any insurer.is not boixid in
ut'ili/y bar cular nsurer and is not aut‘rb'ized to *nake
circumstances .‘ztiicii Mivlfi stroll endeavor1/11 to you.MMA sir i nott>11ixnnnnisitiluiorii‘E‘sov1z1'i1,y of any ins 11::111 lb?ability or Willingness (0bay1;'
r1>turn111111111111115111111tl11ni1'1ritualobiations“ii does not 5111111111‘:11 111 rriakrz My represernatlon 01warranty111111111111beplar:d on ternsayouinsiruu‘nMA to 1.11 so T'ie1111,:1nzi 1111 '.at.in befurining ireyourinsurers1111*parties aoknov.RCVlSion Daib 7,
Services.lii’.1'/\and affiliates are not actii‘r as a
fiduciary for Client exceot to the exte t iequ‘EC by
applicable law.and 3‘1:not have a fiduciary 11'other
enhanced duty to ya:Any reports or adwce provwierl by
MMA should not DE le‘nEd upon as accounting
regulatory or tax adVice in all insizinims
recommends '1 at you se your own z11lv111:on s 11:11
n111tt1 s from proiessioml :oinitinii km 11 111,11iiliil1ny
and tax advisers
lv’n'ii/i Will not be responsnle for the adequacy or
electiveness of any insurance biograms or policies
ierrierited by anotner broker or any acts or omissions
occurring prior to MMA‘s engageinenr.
A 111:1 tlirlizi eli‘'13 event shai either party fc ii
ny i‘itdiret Special.1111:14111121'
i'ivn damage 111 for uny _
'111;;1111v1 .
112gz1t1:l1auility11lMzii<r181 ml E’illzlil Arency
and its and their e‘r‘plcya to yo or you“
arising out or or relat1"§to i'ne fYOJlS 111:1 o
by NINA or its anii‘ates snall not 12x11
Dec 000 T‘n s prov1sion apo‘les 'o "ner’
oernwitted 2y abb‘icablelaw and ‘‘
11 you Info :rvices related
11 111111:111 uizitory niirt ''tax issues relating
our iirsura .ue progra.Any .eoorts or advice
are ded by Mi.A Will be based on publicly available
No mation and NWJAS exoe'ence as an in iii:11101:
owner and risk consultant in de ,ng With such matter [111
other clients an:should not be relied upon as 8 11111111111.
legal,regulatory or iax awioe.[11 all lllhié‘mt’iO“MMA
reooiririiends t'iat u 11k your own adv on
‘ouritnigi ii 11].'Jul ry and tux inattvrs liorn
iJi’UluSSlmlliilinil:11 J 1.1x :lfJViSCFf‘.
MM/\riiz1y pioyirl Ll win modeling aiiLii'oi business
analytk ‘SelVi’s.molur‘v hazard loss and catastrophe
modeling,loss forec rg and triangles,adver 11 1;v1:nl
simulation scarier:and :ortfolio risk analyr ‘11‘11 11111
mapping riSK b :ring and risk rcter‘vrnr ianca
analysis ar 12 1111111111111oyali '
(“Modeling ;‘r")Morluling
1;1:rvir "wi 1 5111:nnni :1 number of
1:1rr1diti11ns .iaiiy mi {111 or any i"i
pruvlocc‘to ‘leA 111111 1 "plate or snoold
enaiy 11ii11rzt1211'in «r are subjectrent11111:“11niy.and a"ual 1.siilts may differLyirom1tproioctodbyVIMATheyareprovidedsolelyforyourbS?eili‘and co not constitute and are 11111"lended to be a substitute for.actuarial.account‘ni 111.egal adVice MMA shall have no liability to any tlilrd r,in Connection Withthese services or to you withanyserVicesnerfc'rneo‘or provrded by 1 tl1ir11‘Except to you inSL’ErS ‘1‘connection with t /r>l;1
0’coverage by MMA.you :uhaH nnr snare any ct MMA s
ehng and Armlyn \u 'k prom Wm)1:mm pony
w U‘CLJiMMAE.rmrnwrrti 'sent.
{5 M\sr:rlldru.\ou;P
nm :1 of muSta“'1!N:'Y ,rkgumn mtmguzumn
Hus /’nment may unty bx:u'nondcd 0y nnmunw .:n
Ugrc
Each De 4,on heth of wtsetf and \t5 a‘Wates o the
Meat ex”v‘:ncrvmttea'by taw.ivowmgty vo’‘ntari y and
\ntehnona Ry ‘v05 ls right to r v any QCX‘DN
,mg to tns
Ag mrmt ,.’M/\or Rs
:mmm‘s mum (linHL .
nrr edinq nndrnu
othmwse rar'huh \717‘Mann:
atso agrees tut nrztudn an,t uployu r
director ofrhe O‘J‘e'pany or [15 emrat ‘5 as 22‘
such action or nroceec‘:g.
m'
y rn en's,
{t is,the wit
Agnvnnuznt
m‘rnn'ttmt by 10.1,
pun/Lam‘s of th s
the fut _to":
[Remainder of pagc Ir
Rum-r __'«m
selforth m this/1 ‘eement or any,e o Dhrase,clause or
semehce rs toum tr:be \Hega‘cf uhe'v‘orceable for any
'eason such word uhrase Cause or sewle15=shalt be
Mcm red or dete A n sum VY‘EFHBV so as to
fc’whose t m tit/.515 rntended :
“smote Wu?”F ,mng HHS;AI rrmmert
h ,,(and t‘r‘r‘:n nfth :Agyre:*1
re thereby r:tmlnnm burnt;nuns
severa‘ote and mdepehcenl
Lt
This Agreement am:\ts written amendments
appehdmes constrtute we enure understanding betheH
MMA and yen and supersede an other agreements or
understan ,related to ts subject matter
Norther putt,
m (unlnnnn
1‘have nn,‘
~muse of a 0
21Mty ‘or any fanure or dutay
n'djeur‘e event
Nothing oxpu or Implied r"(h s A umvnt 'L':intmnhxd
to confer,v shat]anytn n canton upon any
person other ihan the names and the respectwe
successors or gns ofrre can es my ?ghts,remedxes
obligations,or hamhties whatsoewer
m"
[mg/n]
Appendix A
Compensation Disclosure
Marsh 8t McLenrian Agency LLC (“MMA")prides itselt on being an industry leader in the area oi transparency and
compensation disclosure.We believe you should understand how we are paid ici the services we are providing to
you We are committed to compensation transparency and to disclosing to you inionnslion that will assist you in
evaluating potential connicts oi interest
As a protessional insurance producer,MMAand its subsidiaries iacilitate the placement at insurance coverage on
behall orourciients As an independent insurance agent,MMAmay have authority to obligate an insurance company
on behali oi our clients and as a result.we may be required to act within the scope oi the authority granted to us under
our contract With the insurer in accordance wrth industry custom,we are compensated either through commissions
mat are calculated as e percentage orthe insurance premiums charged by insurers,or tees agreed to with our clients.
MMA engages with clients on beheliot itselrand in some cases as agent on behairot its noneusemirates with respect
to the services we may provide For a list orour nonaUS ainliatas,please visit hymihnmgmmhmrrncomrngn-
gum.in those instances,MMAwillbill and collect on behelt orthe nonusAililiates amounts payable to them
tor placements made by them on your betrall and remit to them any such amounts collected on their behalt.
MMAlecelvas compensatlnn thrnugh one or it cambiitaliotl oi the inllowingmethods:
-Retail Commissions —A retail commission is paid to MMA by the insurer torwholesale broker)as a
percentage ot the premium charged to the insured tor the policy.The amount oi commission may vary
depending on several tactors.including the type oi insurance product sold and the insurer selected by
the client,It MMA places business through an amliated wholesale broker or managing general agent.
MMA will advise the client at this at or prior to placement.ctient Fees 7 Some clients may negotiate a tee tor MMA's services in lieu at,or in addition to,retail
commissions paid by insurance companies Fee agreements are in writing,typically pursuant to a Client
Service Agreement,which sets iorth the services to be provided by MMA,the compensation to be paid
to MMA,and the terms ot MMA's engagement.The tea may be collected in whole,or in pan,through the
crediting oi retail commissions collected by MMAtor the client‘s placements.
-contingent Commissions —Many insurers agree to pay contingent commissions to insurance
producers who meet set goals ici all or some oi the policies the insurance producers place with the
insurer during the current year.The set goals may include volume,protllabiiity,retention and/or growth
thresholds.Because the amount oi contingent commisston earned may vary depending on iactors
relating to an entire book at business over the course at a year.the amount oi contingent commission
attributable to any given policy typicallywill not be known at the time orplacement.Supplemental Commissions a Certain insurers and wholesalers agree to pay supplemental
commissions,which are based on an insurance producers pertoimance during the prior year,
Supplemental commissions are paid as a percentage of premium that is set at the beginning ot the
calendar year.This percentage remains ?xed tor all eligible policies written by the insurer during the
ensuing year.Unlike contingent commissions.the amount ot supplemental commission is tmown at the
time at insurance placement.Like contingent commissions,they may be based on volume,prolitability,
retention andior growth,
—wholesaler.MMA may have specialized expenise.access |n surplus llnos markets,or access tospecializedinsurancetecilitiesthattheretailagentdoesnothave.in these transactions.the insurertypicallypaysacommissionthatisdividedbetweentheretailandwholesalebrokerpursuanttoarrangementsmadebetweenthem.-Medallion Program and Sponsorships _Pursuant to MMA's Medallion ngram.penicipatlng carrierssponsoreducationalprograms,MMAevents and other initiatives.Depending on their sponsorship levels.participating carriers are invited to attend meetings and events with MMAexecutives,have the opportunity2
to provide eouoeiion and training lo MMAcoiioagues and receive data reoonsfrom MMA Insurers may
eiso sponsoi oiner nerionai and regional programs and eyenis
-other Compensation 5 Sponsorships A From nrnein lime,MMAmay be compensaieo by insurers ior
pruVIding aomrmsireirye services on behalf orinose insurers,Such emounis are iypioeny calculated as
a percenlage of premium or are based on ihe numbsi oi insureds.Addnionaliy,Insurers may sponsor
MMA training programs and evenlss MMAmay also have arrengemenis wiiri vendors who compensate
MMA ior reiening clienls ior vendor services
We wiHbe pleased l0 piovide you addilional informalion about ouv wmpsnsa?on and lnloimaiion sham allamative
quotes upon your request,Fo(more detailed intermalion ahwl lha (arm:of compensation we receive please ialar in
our Marsh e McLennan Agency Compeneeiion Guide at Wmum
Rm.Mlich 15,2024
Accepted and Agreed:
McGrm Insurance Services,LLC,a Marsh and McLennan Agency LLC company
By,Magma—we:L—m 22 2025
Johnny Foulenot,Execuuva Vice-President
any 0!Pealland,Texas
a,W Dale:W
m—me-r—m-
m.“34-a.m
a»...man-m
M»...mm m
u...u.n we we 'MC(;ri?‘
m...m
__m a...“
u...a..-“
WW...
m
um
um in
m.
m um ..mu-my...w.
W.‘
mm
mm mm
yawn
«m m m_w...
..u WNW.»mum.W...
M.u,»k...m"mum w"...»...m...(mm-u v...1 m.-«my.mu:
m}.5 mm um um ,Imam:”s m“.nuns)sums?um mm
M.5 mm um m x mm;mm mm .”sum umn mm mm,
?...ls mm 4......nus.3 names ms 11m:.wuuwu um.“mm “57st....,.x mm um...mm x 2mm:ml:um:.mm!um.um:saunas
m»...x mm:4......m ,”MM mlx ums mm mm mm.xun mm
m.x mm,m u“1 ”sum;.mu nouns ,mm mm m.»m.
i mm 4......m x Imam:M;nus-w;.5W “man m,mum
._...=x 25an m...w.x 25mm:‘Ws mmx ‘5W ynus mm mmc...x mm m w.3 mm;m...”ML .m:km”:a.»m...»w x mm:22mm)am.3 uwuwx nuns nuns .mm,um mm m.”-
...n s Emmi 1W am 1 imam:wax aims mm sum mm;mm mm
3 mm“;25mm)um i “mam:mus 113515 .$355!»-mm m:w.“
s umwx ism m 1 snmams nuns nmx m m...m mm.mm...s mm x 251mm:.m ,”man:s mums m ‘.mm m,91...“.mmm —1mm 5 mus um:"W m m.“x —3 1mm:um mm...an.
.5...mm
'
M m
m”
a...u...M...,__my...mm...mm.”mm.v...|5n:-....,..y..mun-1
a“...3 mm“mm m ,xnmwns «ms mm m.mm (5721 ms
a...“um ,mm“"uses mu ,"1.157;:w;:32:nun
mnuuno .
Property REDY®Index Q1
2025
Apri|17,2025 Property REDY REDYIndeX REDY-Index
The REDY Index leverages CRC Group‘s collection of actionable data —the wholesale industry‘s
largest.it provides critical pricing analysis monthly,giving you a snapshotof the marketplace.The
REDY Index generates instant intelligence on pricing trends by industry or coverage,enabling our
retail partners to set accurate data~driven expectations with their clients.Removing the guesswork
empowers CRC team members to negotiate competitively,consistently producing better outcomes,
better deliverables,and better results.
annload :Shaveable PDF ansmn thls cla
I’ROI’I'ZR I \l{l‘1l)\’lt‘|\l)l.\'-April 2025
MONTHLYRENEWAL PRICING ANALYSIS
«0.5%gm
5%atW m
M
u.is
mm:mm mayza Mu mu Aum Seplt 05:24 my mm JanZS FebZS MarZS+Average YoV Renewal Change |..No Increase I..mm 9%W'fnw19%20%.
m 4.a yr.am m 1»15%
Results displayed above when average CRC Group rmpeny renewal pricing changes by mam}:(over the previous 12 months],Results
are iiniimd m brokerage neeonnu unnrenewed in the sail):nionllr in the prior year with the same total account limits.To remove outliers,
the top and bottom w.ofacconnts by YoV =4,change have been removed,I:well as the top and boltom 1%ofaccounls by me online
(Premium/Limit‘lo?).The REDY index is intended for edneniidnni purpnscs only as individual accounts typicallydilfer from average
pricing trends.
OVGOIVG PROPERTY ISSUES
The property insurancemarket continued its downwardtrajectory in the ?rst quarter of 2025,
despite signi?cant wild?re losses estimated at $32—$38 billion,Property rates declined steadily
at a pace of approximately 1%to 2%per month.During Q1,an average of 63%of accounts
renewed at flat or reduced rates,while an average of 28%saw modest singledigit increases.
The extent of rate reductions varied based on account characteristics and loss history,with some
accounts achieving reductions in the single digits and others realizing decreases of up to 40%.
Market competition has also driven meaningful improvements in terms and conditions.Insurers
have responded by low ing deductibles,increasing sublimits,broadening policy language,and
offering more competitive pricing,While the focus on valuation has somewhat moderated,
carriers remain attentive to the potential implicationsof ongoing tm'?‘discussions.
Additionally,the property market has bene?ted from a notable increase in alternative capital
sources,particularly through insurancedinked securities (ILS)and catastrophebonds.This
in?ux has played a key role in supporting market stability.We anticipate that the downward
trajectorywill continue for the foreseeable future.